The United States has decided to permanently close its consulate in Peshawar which has long been the closest American diplomatic mission to the Durand Line.

According to a report by the Associated Press, the U.S. State Department informed Congress this week of its intention to shut down the consulate, saying the move would save about $7.5 million annually.

U.S. officials said the closure would not negatively affect Washington’s ability to advance its national interests in Pakistan.

The U.S. consulate in Peshawar was a primary operations and logistics point before, during and after the 2001 invasion of Afghanistan.

The decision is part of a broader effort by the Donald Trump administration to reduce costs and downsize federal agencies, a plan that has been under consideration for more than a year. Officials said the move is not related to the ongoing conflict with Iran.

Last year, the U.S. administration also cut thousands of diplomatic positions at the State Department and dismissed many staff members from the U.S. Agency for International Development (USAID).

However, the Peshawar consulate will be the first overseas U.S. diplomatic mission to be completely closed as part of the State Department’s restructuring.

The consulate currently employs 18 American diplomats and government personnel as well as 89 local staff members.